BOE chief economist and MPC member Andy Haldane with a prepared speech 15 July 2016
- mon pol is part of the collective response to protect economy
- will decide size and extent of stimulus in August
- easing needs to be deliver promptly, muscularly
- overall need to do more to cushion negative shocks
Interestingly the speech was from 30 June in Port Talbot, Welsh steel country, and just been released post-MPC meeting. Title: "Whose recovery?"
Down goes the pound again. GBPUSD 1.3370 EURGBP 0.8330
Got to be loving the two-way. Goes down quicker than it goes up though...
Haldane called for rate cuts a long time before the MPC caught up with the reality.
Very tellingly Haldane highlights the disparity in the UK:
"On subsequent regional visits, including this one in Wales, talking to companies, community groups and charities, I have encountered the same conundrum. For many, the economic recovery is visible and tangible - in sales, in jobs, in investment. But for others it is barely visible and for some non-existent. How to reconcile the macro data with these micro accounts? Were these stories outliers? Or was I neglecting an important missing ingredient in the UK's economic fortunes?
Put differently,whose recovery were we actually talking about?"
Full text here. It's long but well worth a read for those who don't live in the UK and even for some of those who do and sit in ivory towers fully cushioned with rose-tinted glasses.
BOE's Haldane - Time to get the cutting tools out
